Rhode Island Insurance Adjuster Exam

Which of the following types of expenses would NOT typically be covered under supplementary payments?

1. Travel expenses for an insured

2. Property replacement costs

3. First aid expenses

4. Pre-judgment interest

The correct answer is: Property replacement costs

Supplementary payments in insurance policies generally cover a variety of additional costs that arise from a claim, beyond just the direct damages to property or injuries. These payments are designed to assist the insured in managing the expenses involved in a claim process, which may include costs like travel expenses incurred while managing a claim, first aid provided at the scene of the incident before official medical assistance arrives, and even pre-judgment interest, which compensates for the time taken to settle claims before a court judgment is made. Property replacement costs, on the other hand, typically fall under the primary coverage offered by the insurance policy itself and are not considered supplementary payments. These are direct losses covered in the policy's main terms and are subject to deductibles and limits specified in the policy. Therefore, when looking at the categories under which insurance payments are distributed, property replacement costs are part of the primary liability coverage rather than supplementary payments aimed at addressing immediate or surrounding expenses related to the claim process.